This is an attempt to make Marketing students aware of the concept towards securitization and Intercorporate Loans and Investments

1. Marketing of Financial Services
CONCEPTS: Securitization and Inter-
Corporate Loans and Investments

2. Outline
Defination
Stages
Assets Used
Merits of Securitization
Topic: SECURITIZATION

3. Securitization
 Securitization is a process by which financial institutions
create additional liquidity on the backing of their existing
assets through the sale of financial instruments

4. Example for Securitization in balance sheet of a bank)
http://www.yourarticlelibrary.com/law

5. Stages involved in Securitization process
Stage 1: Originator
Stage 2: Special Purpose vehicle
Stage 3: Splitting of Securities
Stage 4: Payment of Securities
Stage 5 : Rating by the companies

6. ASSETS USED FOR SECURITIZATION BY FINANCIAL INSTITUTIONS.
1. Housing loan granted to individuals or
institutions
2. Hypothecation of vehicle loan
3. Leasing finance, especially financial lease
4. Supply bills belonging to government
departments
5. Outstanding on credit cards
6. Long-term loans granted to reputed parties.

7. Merits of Securitization
enables the lending institutions to improve
their liquidity
interest swap
reduces risk on the assets.
diversification of risks.
better credit rating

8. Benefits of Securitization to banks
 Commercial banks have an important responsibility of
protecting the interests of depositors and at the same time
provide them with attractive interest rates
 They obtain better source of funds.
 Maintain capital adequacy norms
 Create more credit

9. INTER-CORPORATE LOANS AND INVESTMENTS

10. Outline
CONCEPT

11.  When a company provides loan, security or guarantee to
another company or any entity
INTER-CORPORATE LOANS
Provisions of Section 186 of Companies Act, 2013 which deals
with inter-corporate loan and investment.

12. When a company invests in any other company
in any form
INTER-CORPORATE INVESTMENT

13. Purpose of the Intercompany Loans
1. Experience a cash shortfall
2. Investment purposes
3. Exchange rate fluctuations

14. Review Questions
1. Defination and benefits of Securitization
2. Explain the Process of Securitization
3. Exchange rate fluctuations
4. Define Intercorporate Loan and Investment and its
purpose

15. You Tube Video Link
https://youtu.be/zPiJRWy1WhU